Euclid to start next step in rehabilitating abandoned homes

The house at 342 East 195th St. in Euclid has been vacant for more than two years.

Its red paint is chipped. The floorboards of its porch have warped. A paper hanging from a doorway warns: "Evidence of mold present."

Now, it will be the first of about 30 homes in the city to receive a makeover, courtesy of the Department of Housing and Urban Development's Neighborhood Stabilization Plan.

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The city of Euclid received a grant worth more than $2.5 million from the federal government to acquire, rehabilitate and resell vacant houses. If the house is beyond rehabilitation, the money can be used to demolish it.

"This is going to get a lot of houses that have been vacant for a long time back out on the market. They're going to be fixed up to the point where they will be as new as a house can be without being new," Euclid Mayor Bill Cervenik said.

The city purchased many of the soon-to-be-rehabilitated homes for $1 from HUD, including the one on East 195th Street. Most cost no more than $15,000.

The city has bought about 45 properties with NSP funds and plans to bid on more in coming months. Cervenik said about 30 houses are being eyed for rehabilitation, another 25 for demolition.

Once homes have been rehabilitated, they can be sold and that money can be used to fund another round of renovations, Cervenik said.

"Each home will undergo extensive exterior and interior renovation using high-quality materials; become more energy efficient through the use of insulation, energy star-rated windows, doors and appliances, as well as a new high-efficiency furnace and hot water tank," he said. "Interior renovation will include new kitchens, baths, floor covering, light fixtures and paint throughout."

Houses also will be renovated on the outside with new roofs, siding and walkways. Some of the homes will be made handicap accessible.

"When each home is done, it will be virtually brand new inside and out, and will become the benchmark for all properties to be rehabilitated in Euclid," Cervenik said.

He said there were about 600 vacant homes in the city and said he hoped the NSP money could be used to rehabilitate or demolish about a quarter of them.

On a related note, the city also received funding to help first-time buyers purchase homes in Euclid. These houses can be ones that have been renovated with NSP money or any other single family home, attached single-family home or condominium unit.

Buyers can receive loans for up to $14,500 of their down payment. The loan is deferred and interest free, and half of it is forgiven after the owners have lived in the home for five years. The remaining 50 percent does not need to be paid until the property is sold or transferred.

"So, it's really more of a grant than an actual loan. It allows people who do make an adequate income an opportunity to afford a home," Cervenik said.

The mayor said he hopes the two programs will bring more families to the city.

"And, of course, they'll pay taxes; and that's good, too," he added.

The funding for the Down Payment Assistance Program also comes from HUD. To qualify for the program, buyers must:

* Contribute 3 percent of the purchase price as down payment

* Receive approval and commitment from a mortgage lender

* Not have owned a home in the past three years

* Use the property as their primary residence

* Meet certain federal income limitations for household income.

Anyone interested in buying an NSP-rehabilitated home should contact program manager Marty Castelletti at 216-289-8141. Those who want more information on the down payment assistance program should call Karen Tomsic at 216-289-4625.